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Upturn AI Summary - About
Capital Southwest Corporation(CSWC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for CSWC
11/03/2026: CSWC (3-star) is currently NOT-A-BUY. Pass it for now.
Capital Southwest Corporation is a Business Development Company that primarily provides senior secured debt financing to US lower middle-market businesses. The company is well-regarded for its internal management structure, which aligns incentives and maintains an efficient cost profile, and its focus on first-lien secured loans helps manage credit risk. Its primary growth story involves capitalizing on the retreat of traditional banks from middle-market lending. Risks include potential borrower defaults during economic cycles and increased competition from private credit providers. The stock is a strong fit for income-oriented investors seeking reliable dividends, though investors should monitor credit portfolio performance and interest rate trends closely.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company's focus is on steady income rather than aggressive capital appreciation. |
| Momentum investor | Weak fit | This is a yield-focused stock typically driven by long-term credit performance rather than short-term price momentum. |
| Value investor | Strong fit | The company is often traded based on its net asset value, offering opportunities when the market misprices its portfolio assets. |
| Dividend investor | Strong fit | The primary appeal is a consistent and often growing dividend stream supported by recurring investment income. |
| Low-risk investor | Mixed fit | While the business model is regulated and transparent, it is still exposed to the credit risk of smaller middle-market companies. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The share price fluctuates based on interest rate expectations and broader market credit spreads. |
| Valuation risk | Medium | The stock can trade at a premium or discount to its net asset value (NAV), impacting potential returns. |
| Competition risk (Private Credit) | Medium / high | Increased capital flowing into private credit may compress lending margins over time. |
| Business quality | Strong | The company maintains a focus on high-quality first-lien secured loans with strong covenants. |
| Dividend income | Strong | The dividend is supported by a growing, diversified portfolio of interest-paying loans. |
| Execution risk | Medium | Success depends on the team's ability to source, underwrite, and manage loans in a complex economic environment. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Very Smooth
The stock has followed a highly orderly price path with minimal short-term disruption.
Analysis of Past Performance
Type Stock | Historic Profit 26.71% | Avg. Invested days 54 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 11/03/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.49B USD | Price to earnings Ratio 12.94 | 1Y Target Price 25.08 |
Price to earnings Ratio 12.94 | 1Y Target Price 25.08 | ||
Volume (30-day avg) 489.1K shares | Beta 0.7 | 52 Weeks Range 17.84 - 25.27 | Updated Date 11/03/2026 |
52 Weeks Range 17.84 - 25.27 | Updated Date 11/03/2026 | ||
Dividends yield (FY) 10.02% | Basic EPS (TTM) 1.81 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Credit Investment Portfolio | Interest income from senior secured loans and dividends from equity co-investments. | The company makes money by lending to small-to-mid-sized companies and collecting interest payments. |
Earnings Date
Report Date 2026-11-02 | When After Market | Estimate 0.56 | Actual 0.56 |
Profitability
Profit Margin 46.68% | Operating Margin (TTM) 87.58% |
Management Effectiveness
Return on Assets (TTM) 6.21% | Return on Equity (TTM) 11.21% |
Valuation
Trailing PE 12.94 | Forward PE 11.36 | Enterprise Value 2.66B | Price to Sales(TTM) 6.3 |
Enterprise Value 2.66B | Price to Sales(TTM) 6.3 | ||
Enterprise Value to Revenue 18.53 | Enterprise Value to EBITDA - | Shares Outstanding 63.73M | Shares Floating 61.77M |
Shares Outstanding 63.73M | Shares Floating 61.77M | ||
Percent Insiders 2.78 | Percent Institutions 29.06 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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